A study on the management innovation and military application of Yuhan-Kimberly

This work is licensed under a Creative Commons Attribution 4.0 International License. * (First Author) Korea Military Academy, Department of Psychology and Management, Associate Professor, kws0125@gmail.com ** (Corresponding Author) Korea Military Academy, Department of Psychology and Management, Assistant Professor https://doi.org/10.37944/jams.v3i3.82 선진국방연구 Journal of Advances in Military Studies 2020, Vol. 3, No. 3, 1-23.


Ⅰ. Introduction
With the advent of the fourth industrial revolution, competition is accelerating fast enough to coin the term "infinite competition era" in modern society, where not only the pace of technological development but also the competitive environment of companies are unpredictable.
There is always competition in the country, business, and personal relationships, and every participant pursues constant changes to gain the upper hand. If this trend of change is not followed, firms will fall behind in competition; they are constantly changing and attempting various management innovations to keep up with the competition.
In this study, we analyzed the case of Yuhan-Kimberly's innovation, which was a great success by attempting innovation centered on human resources development. In particular, it highlights the success of Yuhan-Kimberly, which has led to the virtuous cycle of social development and corporate profit-making activities. It has created economic value through corporate activities and reinvested its profits back into society, leading to new solutions to social problems as a social enterprise and innovating its corporate image. In addition, we want to determine the advantages and disadvantages of management innovation through re-engineering, the direction of companies' development, and how to apply them to the military. The innovation process of companies rapidly seeking and adapting to change in order to survive in a fiercely competitive environment is suitable for inducing effective changes in the stagnant military organizational environment. This case study will give them an idea of the direction of innovation in the military organization.

Ⅱ. Theoretical Study on Re-Engineering and Corporate Social
Responsibility 1) etc." (Whitman, 1997). It is a concept that transforms task-oriented thinking into a process-oriented one and fundamentally redesigns the function-oriented organizational structure to focus on customer value, allowing the overall work to flow. This is a different concept from listing and downsizing; they merely reduce the output to cope with the current drop in demand, which means that re-engineering produces more results with fewer resources. In addition, re-engineering is different from reorganizing an organization or reducing or changing the hierarchy horizontally. The problems that organizations may face are due to process structures rather than organizational structures, and the way to put new organizational structures on old processes is only temporary, so they create new processes. In other words, it seeks to achieve significant performance improvements by boldly abandoning existing processes and replacing them with completely new ones.

Corporate Social Responsibility
Corporate social responsibility (CSR, hereafter) has been used as a somewhat different concept depending on the researchers. The company's social responsibility began to emerge from the recognition that it should pursue the satisfaction of various stakeholders and increase the value of its social responsibility. In other words, CSR ensures that the entity's activities, which meet social values, can satisfy both its members and various stakeholders (Lee, 2016;Smith, 2003).
There have been various studies on the need for CSR and, specifically, its corresponding activities; for example, the classification of CSR activities by Bennett and Kottasz (2000) is a typical study. They divided the social responsibilities of an enterprise into four categories: economic responsibility, legal responsibility, ethical responsibility, and philosophy (Dawkins, 2004). Economic responsibility refers to a company playing an economic role within society, such as realizing profits to its shareholders, paying wages to its members, discovering new resources, innovating, and creating new products and services. Legal responsibility refers to doing business within the scope of laws and rules commonly used in society. Ethical responsibility is doing the right thing with morality and fairness beyond the limits of the law so that it conforms to the values universally perceived in society. Lastly, charitable responsibility refers to the conduct of activities aimed at donating corporate profits to charity or giving back to society (Bennett & Kottasz, 2000;Kim, 2009;Lee, 2015;Yoon, 2006).
Yuhan-Kimberly has implemented many innovations, ranging from improving environmental 6 선진국방연구 제3권 제3호 communities in terms of value and performance; it operates an innovation center for steady research and development as well as a smart work center for flexible work by improving human resources development and working environment.

Year
Timeline  Yuhan-Kimberly(1970-2018 innovation; since the 1980s, it has carried out an internal innovation project called the "New Excellence World-class Process with All Yuhan-Kimberly Family (New Way)." This project consists largely of change in management, business process engineering (BPR), enterprise resource planning (ERP), functional excellence teams, and supply chain management (SCM). In other words, Yuhan-Kimberly's re-engineering consists of innovation activities in New Way, innovation in the working system, the realization of lifelong learning, the social spread of innovative management, and the development of innovative products. Among them, the change in management is driven by cultural changes, organizational and human resource development, and life-long learning.
Yuhan-Kimberly has a strong corporate image that has been steadily growing since its establishment, but it was not easy to manage the company at the beginning. Yuhan Kimberly's initial product, "Kleenex," did not fit well in the period when basic living activities were important; it was difficult to enter the market for reasons such as an excessive emphasis on consumption practices suitable for the Western world instead of South Korean living standards.
Yuhan-Kimberly, however, made a turnaround by renewing its product advertising and was back in its growth phase. As South Korea's economic situation gradually improved due to the booming economy, the standard of living also rose and the demand for toilet paper in flush toilets increased, giving the company a good opportunity to grow significantly. Since then, Yuhan-Kimberly has almost monopolized the market and topped the market share list; however, in 1989, a foreign peer called P&G entered South Korea and was praised for having better-quality products, which caused Yuhan-Kimberly to again suffer a decline in growth.
Instead of giving up, however, Yuhan-Kimberly did its best to develop products tailored to the consumers' needs and focused on innovation efforts, eventually regaining the top market share and preventing P&G from monopolizing the South Korean market. At this time, Vice President Moon Kook-hyun, who was then a preliminary president, pursued human-centered innovations, including the 4 trillion two-shift system, to ensure sufficient rest and education for production jobs, which has made Yuhan-Kimberly's growth possible so far. websites, which contributed to building a good reputation. In addition, as job creation is highlighted as a major policy at the pan-government level, more government officials visit the workplace, further increasing interest in the lifelong learning system.
The lifelong recharging learning system consists of education under the supervision of the company, learning through work and interpersonal relationships. Company-led education is compulsory for employees, including internal and external education, training, and seminars; the company pays the expenses for these activities, which are billed as paid working hours. The company-led education program offers 60% job training and 40% liberal arts education; job training is conducted in the form of workshops or lectures by high-level employees on the use, preservation, and maintenance of machines, and education on safety. Education on liberal arts is conducted in the form of lectures by English conversation, reading clubs, leadership, watching movies and music, volunteering, viewing exhibitions, leadership innovation, and computer education. Through this learning system, each employee must complete at least 180 out of 300 hours of education per year. And it consists of job training (60%) and culture education (40%) with the belief that corporate competitiveness depends on how to nurture and retain competent human resources. Learning through work in a lifelong recharging learning system is a way for the organization members to improve their knowledge, skills, and abilities while performing their duties. Therefore, the workplace becomes a learning resource that serves as a common space for learning; the manager and the supervisor are the commanding supervisors in this learning activity as well as the educators in charge of improving the subordinates' abilities during that 3) Yuhan-Kimberly Sustainable Management Report (2005) activity. Yuhan-Kimberly introduced a job circulation system to change the work area of the employees, allowing them to experience various fields and accumulate knowledge. Finally, learning through interpersonal relationships refers to the employees engaging in activities in which they acquire expertise from their supervisor, colleagues, or experts in the department.

Improving the Working Environment
Canada's National Center for Occupational Safety and Health strongly recommended the shift system, saying that if continuous night shifts increase, more breaks should be taken every two to three days, regular breaks and activities should be arranged, and the shift schedule must be as simple and predictable as possible. 4) Yuhan-Kimberly's lifelong learning system has changed the existing three-shift system to two shifts of four trillion won, drastically reducing the weekly working hours from 56 hours to 42 hours instead of laying off employees by changing the existing working patterns. Eight free hours due to reduced working hours have increased work expertise by providing the employees with job-related professional learning and allowing them to share the results. The "lifetime learning system" immediately paid off, contrary to concerns around it. Productivity has been greatly improved by workers who have operated the factory for a year, earning enough rest and learning new technologies. In addition, safety accidents within the workplace decreased, recording the lowest accident rate among its industrial peers. As mentioned above, Yuhan-Kimberly was able to achieve great success in corporate management without having to lay off its employees through the "lifetime learning system." The annual holiday will be the same, with much more work hours per day than the 4 trillion and 2 shifts per year, with 4 trillion and 4 more hours per day. This system has various effects, such as a decrease in the total commuting hours per year, a dramatic increase in learning time, and, crucially, reducing workers' fatigue and safety accidents by securing breaks, thus, making them factories that improves productivity and production of good quality products.

Introduction of Smart Work
Smart work is an innovative work environment concept that takes into account space, relationship between the president and all employees using the "nim" title, implementing complete dress autonomy that allows casual wear throughout the week, and flexible lunchtime.
The implementation of smart work is a way to accelerate these efforts to ensure flexibility in time and space. For efficient smart work, a clear work promotion process must be standardized and an objective work evaluation measurement must precede the belief between the top and bottom, and efforts should be made to clarify work goals and apply objective evaluation methods on the premise of deep trust in employees. 5)

Family-friendly Management: Solving Low Birth Rate and Improving Employees'
Welfare There is a widespread social perception in South Korean society that working life is only possible at the cost of family life. Working overtime or dining out at work increased the time spent with coworkers, which resulted in relatively neglected family problems. This has caused many social problems, one of which is the birth rate problem. It takes a lot of time and money to raise a child, but there are practical limitations to working and raising a child. Thus, working women are avoiding childbirth. As this trend has gradually spread throughout society, South Korea's fertility rate has decreased, which has accelerated the aging society. To solve these social problems, Yuhan-Kimberly introduced a family-friendly management program that supports childbirth and childcare.
Yuhan-Kimberly is striving to encourage childbirth and childcare in companies by creating the "Zelkova Shadow Room 6) " in 2006 and holding a "Pregnant Women's Meeting" in 2009. In 5) Yuhan-Kimberly homepage (http://www.yuhan-kimberly.co.kr) addition, both male and female employees are provided with three months of parental leave as well as childbirth congratulatory money and products. Childcare support is also available, with Daejeon plants having separate workplace childcare facilities, supporting infant education expenses for three years, and providing university tuition regardless of the number of children.
In addition to childbirth and childcare support, Yuhan-Kimberly provides "family-friendly support" to its employees, with a "happiness-finding program" that provides expert counseling and necessary support when employees and their families are in trouble. It also introduced a "regular leave-of-work system" to protect the employees' family life. In addition, the "work hour option" was introduced so that one could choose their work hours. It supports flexible work depending on personal circumstances, such as having children attend school, go to graduate school, and being hospitalized and requiring nursing. As such, Yuhan-Kimberly sought to improve the working conditions and living standards of its employees through numerous in-house welfare programs and eventually contribute to solving the social problem of low birth rates. elderly, the subject of welfare, were transformed into the main agents of economic activity, the problems caused by aging would be solved and, at the same time, could promote economic growth. If the nation's senior workforce grows to more than 16% of the total, it will be the driving force behind the new national economic growth, which will have the effect of creating jobs and raising income. 8) An example of an "active senior campaign" is a "defended survey bus." This campaign was designed to improve the negative perception of urinary incontinence (UI) for older people and their children who think of UI as shameful as their parents grow older.

Creating Shared
It meets with elderly people who have experienced inconveniences with UI in person to talk and provide help. The "active senior campaign' not only changes social awareness but also projects related to the elderly. Yuhan-Kimberly discovered and fostered 26 related projects by 2015 and hired 211 senior citizens. 9) It also develops, produces, and sells "senior products" for the health and convenience of older consumers. Products catered for senior citizens, such as functional shoes and portable salinity systems, are growing rapidly, recording an average growth rate of 17%. As mentioned above, Yuhan-Kimberly succeeded in expanding its business through CSV and contributed to solving social problems caused by the aging phenomenon.
The advantage of Yuhan-Kimberly's management idea is that it is recognized as essential to pursue profits and competitiveness of companies as well as both social and economic values using corporate resources and expertise. In particular, the company expects people to actively continue social and economic activities even after retirement, increasing sales by expanding new business opportunities with the growing active senior market, which has the experience and economic power. If the passive elderly who are subject to welfare turn into active seniors, it can solve numerous economic and social problems caused by aging, such as reducing social welfare costs and helping the nation's economic growth. Therefore, Yuhan-Kimberly is taking full-scale active senior programs and managing them as a core business so that it can secure the senior market first by growing into a major business and simultaneously generating economic and social performance. 10) 8) Yuhan-Kimberly CSV Business Headquarters 9) Cumulative personnel 10) Yuhan-Kimberly homepage (http://www.yuhan-kimberly.co.kr)

Integrate Social Enterprises and Corporate Images
Social enterprise pursues both for-profit companies that seek only private profit and non-profit entities that seek only to achieve public interest. These social enterprises seek to gain a competitive edge by using the management technique of corporate image integration, which clarifies a company's role, mission, and vision in society and imprints it on the consumers to maintain the company's consistent image and behavior (Gray et al., 1998 .92

Social Enterprise
Product Trust ⋅I will trust social enterprise products. ⋅Social enterprise products can be trusted. ⋅Social enterprise products are honest products. .88

Intention to Repurchase
⋅I will consider social enterprise products first. ⋅I will purchase social enterprise products. ⋅I will consider purchasing social enterprise products. ⋅I would like to recommend social enterprise products to others.
.88 * Source: (Cho & Lee, 2015), Corporate Social Responsibility Activity, Social Corporate Attitude, and the Impact of Trust in Social Enterprise Products on Purchase Intention

<Table 2> Categorized α value and reliability
According to Cho Eun-mi and Lee Eun-soo's study (2015), which deals with the relationship between social enterprises and product reliability, positive images of social enterprises showed significant correlation with product reliability, which in turn showed a high correlation with consumers' willingness to repurchase products. Table 2 shows that the α value of the social enterprise attitude is .92, and the value of the social enterprise's product confidence and the α value of the purchasing intention is .88; both values exceed .80, which is statistically significant.
Thus, the method of managing a business that fulfills its social responsibilities is an innovation technique that ultimately helps the company generate profits.
Yuhan-Kimberly can be seen as a representative social enterprise that plays a leading role in solving social problems along with the pursuit of corporate profits. In 1970, Yuhan-Kimberly was founded on the "entrepreneurship" of the founder of Yuhan Corp., the sole parent company of Yuhan-Kimberly, "the economic profits received from society should be returned to the society that nurtured it." Therefore, it has utilized the corporate image integration strategy as a social enterprise from the beginning of the company's foundation and pursued co-prosperity between the company and society.

<Table 3> Social Problems and Causes during Different Eras in South Korea
As shown in Table 3, South Korea had various social problems during different periods; in the 1970s, unemployment and absolute poverty became serious issues due to changes in the industrial structure and a long-term economic recession after the oil crisis in 1973. In addition, due to minimum social awareness of welfare, the working environment was very poor, and family dissolution due to sudden urbanization developed into a social problem. In the 1980s, economic inequality, environmental pollution, and aging emerged as new social problems. The social problems and the consequent deepening of social conflicts have hampered the nation's continued economic development and social integration, which has had a profound impact on all members of society, including the people and businesses.
To overcome these social problems, the government has made great efforts to connect businesses with society, and as a result, various institutional measures have been drawn up over the past three decades, such as the 1997 "public work" and the 2007 "Social Enterprise Promotion Act." Yuhan-Kimberly presented the following vision 11) of social responsibility management to revive the social role of enterprises expected by society and carry out effective corporate image integration strategies in a timely context. First, by creating economic value through business activities and reinvesting profits back into society, it forms a virtuous cycle of social development and corporate profit activities. Second, it presents new solutions to social problems and builds innovative markets accordingly. Since then, Yuhan-Kimberly has been planning and implementing programs linking social contribution to corporate activities in various fields, starting with the "Let our rivers and mountains be green and green" project in 1984.

Social Enterprise Image Integration Strategy
Since its establishment in 1970, Yuhan-Kimberly has attempted numerous managerial innovations as a social enterprise, as shown in Table 4. In 1984, the "Let our rivers and mountains be green and green" project was started, and in 1988, the "Green Camp for Highschool Girls" program was conducted to provide environmental education centered on girls in the community. Since 1998, Yuhan-Kimberly has expanded its business not only to South Korea but also to Northeast Asia and North Korea. Since 1993, some factories have introduced

11) Yuhan-Kimberly 2012 Corporate Innovation Awards Report
Year Corporate Image Integration Strategy Yuhan-Kimberly has set 12 key tasks in 4 major sectors to achieve its management goal of "super-class life innovation companies," and has focused on its capabilities to achieve its goals by 2020. In the organizational/cultural sector, it seeks to enhance organizational flexibility and build a consumer-centered world-best marketing sales company culture. In the process/infrastructure sector, it seeks to establish a market/consumer intelligence system, improve marketing/business collaboration process, activate SCM external collaboration, overhaul partner management system, strengthen IT digital leadership, and strengthen smart manufacturing capabilities. In the business sector, it aims to establish a channel strategy and reorganize the channel management system, systematize programs for enhancing sales workforce capacity, establish a system for targeting the reverse direct-purchase market, and specify and implement key strategies for each business division. Finally, in terms of M&A/partnership, the vision was to establish an M&A/partnership strategy and strengthen capabilities. In this way, Yuhan-Kimberly's sustainable management pursues co-prosperity based on economic profitability, social responsibility, and environmental soundness, and strives to create economic, social, and environmental values by promoting sustainable management activities while considering the social and environmental impacts at all levels of the value chain.

Work-Life Balance and Family-Friendly Management
Yuhan-Kimberly considers the happiness of employees to be corporate competitiveness; it has implemented the time-to-work system and work-to-work system, continuing to improve the systems since it received the government's family-friendly certification in 2008. It is also actively practicing "work-life balance," which has emerged as a social concern through the "nim" naming system, the introduction of recharging vacations and learning vacations, the implementation of projects to form a positive organizational culture, and the flexibility of commuting hours. Instead of forcing the value of past sacrifices, the military is also striving to improve the welfare and working conditions of its members according to social trends, establishing and implementing plans for "work-life balance" for each unit, reflecting childcare hours, implementing long-term vacations, and improving recreational conditions. Some units have been certified "home-friendly" by the Ministry of Gender Equality and Family, and many are still trying to obtain additional certifications. 12) Considering the special duties of the military, 12) Certification Authority of the Ministry of Gender Equality and Family: 10 units including the Ministry of National Defense if family-friendly service conditions are promoted in various ways, the service satisfaction of the members of the military and their willingness to carry out tasks will increase, which will also contribute to the creation of a positive social culture.

Promoting Digitalization of the Military Information System
Yuhan-Kimberly is innovating by actively accepting the development of science and technology as well as changes in the business environment for consumer-centered management.
It has endeavored to promote digital transformation, establish an integrated platform, secure a foundation for data analysis, innovate manufacturing and build a Manufacturing Execution System (MES), and expand channels through e-commerce. 13) The military has also been establishing an integrated intelligence system since 2014, which will enhance logistics visibility and efficiency as well as reduce costs by integrating information systems that have been operated separately for each military function. Furthermore, the government should strive to achieve innovation that simultaneously increases the efficiency and satisfaction of the service unit by accessing logistics systems using smart devices and establishing platforms that interact with customers. In addition, big data analysis through information system utilization records will contribute to enhancing the accuracy of demand forecasting and establishing an efficient military inventory management system.

Horizontal organizational culture
Yuhan-Kimberly is forming a horizontal organizational culture by encouraging employees to address each other without using their titular ranks. Although it is limited due to the strong hierarchical order and strong class culture, the military also needs to recognize personal respect and individual abilities to improve job satisfaction and performance of its members. The military also has a positive wind of change, which emphasizes mutual respect among members, the inclusion of various opinions, and the organizational culture of treating members personally.
Each military leadership center provides leadership education required by modern society such as officers' conservative education courses and field units. In addition, various efforts are being made, for example, producing and distributing contents such as leadership self-development and the Army General Supply Center(from the website of the Ministry of Gender Equality and Family) 13) Yuhan-Kimberly 2018 Sustainability Report, https://www.kimberly-clark.com/en/responsibility/annualreports books, and "leadership coaching" is conducted for the unit commanders to ensure proper direction of command and advice on organizational culture. In the future, these activities should be institutionalized and developed to create a culture in which the members voluntarily work hard to create a military organization that achieves both high satisfaction and achievement as well as good results.

Promotion of Ethics Management and Social Contribution Activities in the Military
As society develops, external environmental factors and stakeholders are becoming more diverse to consider in corporate management. In addition, corporate influence on society is also increasing, with companies making decisions that satisfy a variety of stakeholders through the promotion of CSR. In particular, the military must fulfill its social responsibilities as a public institution, especially when transparency and stability have become important for the military's policy and business promotion due to the development of various media and social networking services (SNS); moreover, public relations that can lead to the emotional consensus of the people are very important. To this end, we must analyze many cases of private enterprises and study various fields such as environment, ethics, donation, shared growth, advanced organizational culture, and elimination of gender discrimination. In addition, the military should actively promote such projects, recognizing that many policies can enhance the military's credibility through implementation, such as promoting its policies in compliance with law and ethics, training to repair the environment, contracts for supplies to help small and medium-sized enterprises grow, and cultural creativity to enhance the service satisfaction of its members.

Ⅷ. Conclusion
Since its establishment in 1970, Yuhan-Kimberly has operated various programs to create a positive corporate image by contributing to solving social problems as a social enterprise. This Enterprise" rating in the evaluation of the Shared Growth Index, winning several presidential commendations from the Korea Forest Service, the Ministry of Gender Equality and Family, and the Ministry of Industry and Trade. It has also contributed to society, including the "Let our rivers and mountains be green and green" project and, as a result, it is considered a representative company of sustainable management.
Yuhan-Kimberly's management innovation has increased its sales performance, but its success has also become evident in the environmental sector. Thirty-four products of Yuhan Kimberly obtained environmental mark certification and, through continuous monitoring and collaborations, the company has achieved its 15.3% more emission capacity goal by introducing carbon dioxide reduction programs in business sites through implementing the emission trading system. Based on Yuhan-Kimberly's management innovation that led to these achievements, the government proposed work-life balance and family-friendly management in the military organization, digitalization of the military information system, formation of a horizontal organizational culture, and increased ethical management and social contribution activities.
The case of management innovation as a social enterprise shown by Yuhan-Kimberly directs towards the right role of a company as a member of society. It is a good idea for companies to think about whether they can grow separated from society and whether the ultimate goal of all private companies, that is, maximum profit-making can be achieved independently of their social roles. Furthermore, according to Yuhan-Kimberly's social contribution activities, it can relate to the right direction for regaining public trust and coexisting with society toward military social responsibilities. We hope to induce effective changes in the military organization environment through research on the innovation process of companies rapidly seeking change and taking a competitive advantage in the fierce business environment. We also hope that this case study will bring positive ideas on the process of sustainable development in the military.